Should I sell my flat despite my loyal tenant?

Should I sell my flat despite my loyal tenant?

0:01 AM, 6th November 2024, About 13 hours ago 4

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Hi, I have an ex-local authority one bed flat in Norwich which I have owned for 9 years. I bought it with the tenant in situ and she has been a model tenant, always paying the rent on time.

I have increased the rent only once in this time by £20, the monthly rent is now at present £445, way below market rent. The estate agent I bought though has been managing it ever since, at an agreed very low rate of 5% with no extra fees. This has again ticked along with no issues for the past 9 years.

I was always going to manage it myself eventually, but due to the low fee, I have just let it go on. Due to a huge mortgage increase, I now want to increase the rent by £50 (cost to me £180). I asked for this to be actioned in August, and start in November.

The estate agent ‘forgot’ due to staff changes, they also told me I cannot increase the rent on a Section 13 by more than 5% so will need a new tenancy, which they will charge a reduced fee of £100+VAT. As I had a verbal agreement for no extra charges, which has been in place for 9 years without problem, I have decided to leave the agency and manage it myself.

They have not done the quarterly inspections stated in their agreement and the only paperwork I have is the original agreement from 2016, stating an exit fee of £250. They have informed me I have to pay 10% of the annual rental income to terminate.

To be honest, I would really like to sell and get out of being a landlord as the income from the flat is pretty low now but feel bad about making a nice blameless lady homeless, as she is working but on a low income and so would end up in a house share or B&B. She is in her 60s and I have a conscience!

Should I just pay up and take this as a lesson learned?

Thanks,

Emily


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Rich Robson

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10:34 AM, 6th November 2024, About 3 hours ago

Your same as me, we should not be in this position, also if they get their way we wont be able to evict if it costs them more to go elsewhere. We need to be cut throat and not care, but we cant change. So one option is to sell with tenant insitu, but you wont get the best price.

Dylan Morris

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11:09 AM, 6th November 2024, About 2 hours ago

You can increase the rent with a Section 13 up to market rent. Your agent is lying there is no such thing as 5% maximum increase. You do not need a new contract. I would ditch your agent as they are liars and also useless and pay the £250 exit fee that is stated in your contract with them.
I’d meet with your tenant and tell her that either the rent is going up to market rate (less £50 for being a good long term tenant). If she doesn’t like it then you are going to sell the flat. Her choice. If she wants to stay put then you have a few months to see whether she can pay the increased rent before issuing a Section 21 (whilst you still can) if she can’t pay it.

BobH

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11:24 AM, 6th November 2024, About 2 hours ago

It seems to me that the fault lies with the Estate Agent. I would take him on on the basis that he has failed to do his job over a period of 9 years. His failures have hurt you and potentially your tenant. If he is a fair man / woman he will accept his short comings and let you terminate without any fuss. It won’t be that easy but you should be able to come to some agreement that is reasonable to you.
Make a list of his failings and talk to him face to face. That should include poor advice and failure to recommend rate increases over the years as well as the points you have mentoned.

Monty Bodkin

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11:24 AM, 6th November 2024, About 2 hours ago

Reply to the comment left by Dylan Morris at 06/11/2024 - 11:09
Your agent is lying there is no such thing as 5% maximum increase.

That was my initial thought too Dylan but it might be restricted by the tenancy agreement.

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